AME/APQC Benchmarking CoP Virtual Networking Event ...€¦ · Benchmarking Presentation...

AME/APQC Benchmarking CoP Virtual Networking Event February 19, 2013

Real-Time Case Studies on Benchmarking

Ron Webb, AME/APQC Benchmarking CoP Travis Colton, APQC Don Davies, General Dynamics John Mellin, GlaxoSmithKline

2 ©2013 APQC. ALL RIGHTS RESERVED.

Housekeeping All lines are muted.

You can submit questions/comments at any time. We will address all questions during the Q&A session at the end of today’s presentation.

Links to the recording and slides will be made available to all attendees via e-mail.

Follow-up survey to provide more feedback.

AME/APQC Benchmarking CoP Virtual Networking Event February 19, 2013

Real-Time Case Studies on Benchmarking

Ron Webb, AME/APQC Benchmarking CoP Travis Colton, APQC Don Davies, General Dynamics (pre-recorded) John Mellin, GlaxoSmithKline (pre-recorded)


Session Agenda 10:00 a.m. Welcome/Housekeeping

10:05 CoP Business

10:10 Benchmarking Presentation

10:45 Open Q&A

11:00 Adjourn


2013 Benchmarking CoP Calendar

Send your topic or presenter recommendations via the Q&A tab or email at [email protected].

Month Date Session Presenter

February 2/19/2013 Real-Time Case Studies in Benchmarking

Travis Colton, APQC Don Davies, General Dynamics John Mellin, GlaxoSmithKline

March 3/19/2013 Why Organizations Misbehave: Looking Beyond Lean Tools UL

April 4/15/2013 AME Spring Conference (San Antonio, Texas) TBD

April 4/30/2013 APQC Knowledge Management Conference (Houston, Texas)

May 5/21/2013

June 6/18/2013 July 7/16/2013

August 8/20/2013 September 9/17/2013 October 10/21/2013 AME Annual Conference (Toronto)

October 10/24/2013 APQC Process Conference (Houston, Texas)

November 11/19/2013 Continuous Improvement and Knowledge Management at Eaton Eaton

December 12/17/2013

mailto:[email protected]


AME Events (www.ame.org)

02/27 - 02/28 Salt Lake City, Utah Cost Effectively Produce One Item at a Time

02/27 - 02/28 Minden, Nevada Lean Safety

02/27 Newark, Delaware 3P Application

03/06 - 03/08 West Point, New York Building Leaders for Tomorrow - Today!

03/07 Making Materials Flow

03/12 - 03/13 Philadelphia, Pennsylvania Lean Bronze Certification Preparation Course & Exam

03/12 Chicago, Illinois Compression and Risk Management Workshop

http://www.ame.org/


APQC Events http://www.apqc.org/events

02/20 Finance Webinar The Last Mile of Finance

02/21 Knowledge Management Webinar Addressing Knowledge Erosion at Wipro

02/26 Human Capital Management Webinar Current Challenges in HR

03/06 APQC Orientation Overview for Industry Organizations

03/13 APQC Orientation Overview for Professional Service Firm Organizations

http://www.apqc.org/events




APQC Research Agenda http://www.apqc.org/research_agenda

Active Research Mobility and Finance

Financial Analysis Becomes Financial Analytics

Managing the Financial Risks of Supply Chain Disruption

How Leading Organizations are Using the PCF

Using Social Media to Collaborate and Share Knowledge

Upcoming Research Managing Knowledge Within Projects

How Shingo Prize Winners Manage Their Supply Chains

Avoiding Pitfalls in Fixing Finance

What Makes Top Performing HR Functions Different?

http://www.apqc.org/research_agenda



Benchmarking Presentation Benchmarking Case Studies

All lines are muted. Please send your questions via chat to the Organizer. We’ll cover them at the end of this session.

We WILL send out a link to the recording of the event in the coming days.

Travis Colton, APQC Don Davies, General Dynamics John Mellin, GlaxoSmithKline


Background: APQC Benchmarking Assessment Survey

APQC conducted an assessment of benchmarking practices among our members.

We’ll present some of the results here.

Provide attendees the opportunity to participate in the assessment survey.

Travis Colton, APQC



Benchmarking Assessment Survey Results


Benchmarking Assessment Survey

APQC launched a self-assessment survey in 2012 to help organizations:

Determine the current state of their internal benchmarking capabilities.

Understand their ability to obtain benchmarking information through internal means.


How do you rate your organization’s ability to obtain good benchmarking information?


Why Benchmark?

If we invest in improvement what kind of return can we expect?

Which sites are performing well compared to others in the organization?

What is working and what isn’t?


Are We Ready?

Readiness Need

Usability Validity


Assessment Results Overview

Need Usability Validity Readiness


The Business Need

Has a business need for benchmarking been identified?

Senior management understands and supports benchmarking as a key improvement strategy.

73% 27%

69% 31%

Perceived need for benchmarking content by your management.

75% 25%


Readiness

56%

35%

9%

Low Medium High N=82

Overall Benchmarking Readiness Score for All Participants

Right now our readiness is low We need to be at a higher level


Why Do We Struggle?

Benchmarks that are easy to get are often not trusted by stakeholders.

To get the few trusted benchmarks often requires a lot of resources.

Travis Colton, APQC



Benchmarking Applications


Applications of Benchmarking

Internal External

Metrics

Process


Which type of benchmarking is most needed by your organization?


Which type of benchmarking will provide the greatest value to your organization?

Ron Webb, APQC



The Cost of Not Knowing


Cost of Not Knowing

CONK


Benchmarking Brings Innovation to Improvement

Time

Pe

rfo

rman

ce

Initial Rollout

Back to the “Old Way”

Goal

Recommitment

We’re getting the hang of this

Backslide

Let’s learn how others are doing this

Breakthrough performance


Benchmarking Assessment

APQC’s benchmarking self-assessment survey:

www.apqc.org/custom-benchmarking-services

http://www.apqc.org/custom-benchmarking-services






GlaxoSmithKline Case Study

Travis Colton, APQC


GlaxoSmithKline Background

Our products are used by millions of people around the world, helping them to do more, feel better and live longer.

Focus areas of: pharmaceuticals, vaccines and consumer healthcare

We have offices in more than 115 countries and employee more than 97,000 workers


How does GSK spending on core facilities activities stack-up against peers?

Core Intent of Benchmarks


Background

Project began in late December 2011 Selection of services and sites at GSK to include in

benchmarking

Define parameters for benchmarks to ensure comparability

Secondary research to find the best sources of benchmark data

Ten GSK sites selected that represent a wide-range of facility uses

Fourteen high-level services selected

Final deliverables in May 2012


The Value Question

? Pharmaceutical Peers Other Industries

Are the services we receive a good value to GSK?

How do services compare across sites?


The GSK ‘Landscape’

Benchmarks have provided insight about the ‘high and low’ spots for costs from both an internal and external perspective

Validation of the benefit of outsourcing where applicable

Opportunity to understand why variations exist


Reaction to Benchmarking

Overall costs were where we hoped they would be

Variations by site provided view of potential areas for review/improvement

Happy with results


Next Steps

Review variations and look for root causes for them

List potentials and prioritize

Look for ways to standardize services if deemed appropriate.

Review CMMS capabilities to further enhance site data.

Question and Answer?

Thank You for Attending!

• Feel free to forward questions

or recommended topics to

[email protected]

[email protected]



AME/APQC Benchmarking CoP Virtual Networking Event ...€¦ · Benchmarking Presentation...

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